KakaoBank Signs Joint Venture Agreement with SCBX to Establish a Virtual Bank in Thailand

[The Financial News] KakaoBank is moving in earnest to establish a virtual bank in Thailand.
KakaoBank announced on the 22nd that it has signed a joint venture agreement with SCBX, a major financial holding company in Thailand, to establish a virtual bank.
The virtual banks being introduced by the Bank of Thailand (BOT) will provide financial services exclusively through digital platforms without any offline branches, a model similar to South Korea’s internet-only banks. Smartphone penetration in Thailand now exceeds 90%, and real-time payment systems such as "PromptPay" are widespread, driving rapid digital transformation. However, tens of millions of people are still classified as part of the underbanked population who do not fully benefit from financial services. The virtual bank to be established by KakaoBank and SCBX plans to offer innovative mobile financial services tailored to these customers.
KakaoBank will initially acquire a 10% stake in the joint venture and gradually increase its shareholding to 24.5%, aiming to firmly secure its position as the second-largest shareholder. Based on the technological capabilities it has proven in South Korea, KakaoBank will oversee the entire front-end development, including user interface (UI) and user experience (UX) design and mobile app development, effectively transferring the strengths of Korean digital finance. WeBank’s subsidiary, WeBank Technology Services, will also participate as a technology partner to maximize synergies.
KakaoBank’s entry into Thailand is significant in that it expands the successful business model it has built in Indonesia. Superbank, the Indonesian digital bank that received KakaoBank’s first global investment, has surpassed 5 million customers in a short period and is showing rapid growth.
The virtual bank is expected to begin official operations after completing system construction and a preparation period, with the specific launch schedule to be finalized according to approval from the BOT. KakaoBank plans to expand its presence not only in Southeast Asia but also into other regions, and to move beyond simple equity investments and know-how transfer to take the lead in building mobile financial systems. Yun Ho-young, CEO of KakaoBank, said, "Our entry into Thailand is a symbolic achievement, marking the first time in 25 years since the 1997 Asian financial crisis that a Korean bank has re-entered the Thai market," adding, "By leveraging the strengths of South Korea’s digital finance, we will build a successful virtual bank model and lay the groundwork for expanding into global markets."
chord@fnnews.com Lee Hyun-jung Reporter